Currency is more than just a medium to buy or sell
goods. The currency exchange is a place where you buy or sell currency of
various countries and earn returns. Here, you need not buy and keep bundles of
physical currency. You can purchase the currency value online to benefit from
the fluctuations in the Forex market. Currency exchange is also known as
foreign exchange, FX or Forex.
People who frequently travel abroad or deal with foreign
clients will be already aware of the impact of changing currency rates. They
are aware of the current exchange rates. Similarly, at a currency exchange,
investors study the performance of the currency value. Then, they sell them
when the currency value is high.
Here are some facts about the rise of currency in the
had the freedom to create their money in the United States till 1908.
• By the
year 1913, pound sterling became the most valuable currency in the world.
• In the 1980s, Reuters Dealing, an
electronic currency trading platform was created by Reuters. It was considered
the most advanced system before the advent of the internet.
GBP/USD pair was nicknamed as ‘the cable’ because before modern technology
transformed the trading system, a steel cable connected the New York and London
• “Gimme a
buck.” You might have heard this in American sitcoms. ‘Buck’ means one dollar
or can indicate money. Well, people exchanged buckskins as currency in the
past, and this led to the American slang ‘buck’ which is used even today.
markets are considered the most liquid markets globally. No authority regulates
the currency exchange. Traders execute deals based on credit agreements.
Self-regulated methods work effectively in the currency exchange.
• Pip or
percentage in point is the smallest increment of trading activity in a currency
Currencies are always traded in pairs. Although no physical exchange of
a currency happens, the trading takes place in the form of lots electronically.
So, currency trading is speculative in nature.
‘Swissie’ is the nickname for Swiss Franc in the currency exchange.
back to 8th century, GBP is the oldest currency in the world.
are around 180 currencies across the world. USD, GDP, Euro, Swiss Franc, JPY
are some of the major currencies traded in the currency exchange.
There are much more
amazing facts about currencies. It is surprising that currency trading lets you
use the money to gain from the value of currencies you don’t even touch. Know
more about the functioning of currency. Exploring the possibilities of
investing in a currency exchange.